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The Major Energy Marketers Association of Nigeria (MEMAN) has announced a minor reduction in the landing cost of Premium Motor Spirit (PMS), also known as petrol, reflecting a degree of stability in the country’s downstream oil sector.
According to reports, the landing cost of petrol fell marginally to ₦970 per litre in December 2024, down from ₦971 per litre in November.
This decrease coincides with a slight drop in crude oil prices, which declined from $74 per barrel to $73.77 per barrel within a week.
In a daily bulletin shared with Vanguard, MEMAN attributed the change in landing cost to a crude oil price of $73.91 per barrel (Brent) and an exchange rate of ₦1,533.57 per dollar.
The association noted, “The pricing of international petroleum products remains volatile due to geopolitical and economic factors, including developments in the Middle East, China’s market dynamics, and the implications of the recent U.S. elections.
Foreign exchange fluctuations also play a significant role, causing landing costs to shift multiple times within a single day.”
Despite this, petrol prices in Lagos have stayed consistent at ₦1,025 per litre.
Ehimen Joseph, Chairman of MEMAN’s Lagos State Chapter, explained that market forces in the deregulated sector determine petrol pricing, making price reductions possible over time.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), added that immediate price reductions are unlikely due to existing stock levels.
“Marketers must deplete their current stock before prices can adjust. Sustained price changes are influenced by market dynamics and foreign exchange stability, with adjustments expected over the next month or two,” Yusuf said.